What has happened?
The Monetary Authority of Singapore (MAS) is consulting on the creation of predefined sandboxes, known as Sandbox Express, to complement the existing FinTech Regulatory Sandbox that was launched in 2016.
What does this mean?
In its press release, MAS said that the Sandbox Express is suitable for low-risk activities or those that are well understood and could be contained within the specific predefined sandbox.
As a start, it will include sandboxes specifically predefined for insurance broking, recognised market operators and remittance businesses.
Each predefined sandbox will have its boundaries, expectations and regulatory reliefs predetermined.
Applicants must declare that they will comply with all expectations of the predefined sandbox applied for, including providing clear disclosure and obtaining an acknowledgement from the user before the user can be onboarded as a customer.
Applications will be assessed based on two criteria:
technological innovativeness of the financial service; and fitness and propriety of the applicant’s key stakeholders.
The applications will be fast-tracked, with approval decisions granted within 21 days.
An approved predefined sandbox entity will be required to submit periodic progress reports to MAS as well as ensure that the predefined sandbox expectations are adhered to.
The consultation ends on 13 December 2018.
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